Inventory Valuation Report

ReginaB

Hello again, I need some assistance with the discrepancy between the balance sheet and "Inventory Valuation Summary" report.

I have found the which transaction is making the discrepancy by looking through the transaction detail report from balance sheet. It seems that the amount or ie. the opening balance have been entered in the balance sheet however, this is not recognised or not showing within the "Inventory Valuation Summary" report.

What may be the reason this has happened? And is there a way to fix this?

Acctd4

Hi @ReginaB

Stock values are continually & automatically updated as you buy & sell your Inventory Items, based on the quantities & average cost.

Example:

You originally bought 100 T-shirts at $ 5 each. When you have 10 shirts left in stock, you order 100 more shirts, but the purchase price has now gone up to $ 6 each.

Here's how Reckon Accounts/Hosted calculates the average cost:

• The cost of your old stock is $ 50 (10 shirts x $ 5 each)
• The cost of the new inventory is $ 600 (100 shirts x $ 6)
• The combined cost of the old & new inventory together, is $ 650 ($ 50 + $ 600)
• Therefore, the average cost of your entire Inventory is $ 5.91 ($ 650/110 shirts)

Therefore, the system is unable to identify a stand-alone Journal as it relies on the movement of the Items themselves, in order to perform these calculations. Instead, use the Adjust Quantity/Value on Hand feature (under the Suppliers dropdown menu > Inventory Activities) to adjust Item quantities &/or values.

Hope that helps 😊

Acctd4

Hi @ReginaB

This report is specifically generated from (Inventory) Items movements only.

" … It seems that the amount or ie. the opening balance have been entered in the balance sheet …"

Has a manual amount been entered to the Inventory Asset account (eg a General Journal, for example) ? 🤔

ReginaB

Yes, a general journal has been entered to the inventory asset account. What are you thinking might be happening?